Water district begins process of forming South Village Assessment District

by DAVID ROSS

February 20, 2013

The Valley Center Municipal Water District board at its Feb. 4 meeting took three actions towards the creation of an assessment district to fund the South Village Wastewater Expansion Project in order to sewer properties in the South Village.

Prior to the vote the board heard reports on Cost Allocation and Assessment Lien Determination by Eugene F. Shank – EFS Engineering, Inc.; an appraisal report by Bill Anderson of Anderson & Brabant, Inc.; on financial feasibility of the new district by Tom Demars of Fieldmann, Rolapp & Associates; and on the three resolutions necessary to go forward, by Warren Diven of Best, Best & Krieger, LLP.

In order for VCMWD to move forward the district was forced to have more skin in the game, paying for more connections to bring the number of paid for EDUs (equivalent dwelling units) to 350, even though they only have commitments for 330 EDUs from property owners. This will cost the district a total of $72,000 in cash plus an annual debt repayment of $27,600 Total per Year for 12 EDUs. Bell Holdings also committed to buying another five EDUs, and Gateway Investments committed to an additional 2.5 EDUs.

“If we come in with a minimum of 350 EDUs it’s going to go a lot more smoothly with the state. We are nineteen and a half EDUs short,” said the project manager, Wally Grabbe, in his report to the board.

The “state” he referred to is the State Revolving Fund, which is providing a low interest loan to the district to help pay for the project.

Grabbe said that by committing extra district resources, the board ensures that the project would go forward. Although the district will be risking some of its own capital, he noted that the project would add 140 water meters, which would pay the district an additional $210,000 to connect, and pay an additional $30/month in service charges, netting the district an additional $50,000 annually.